Markets in a Minute - Inflationary Haunt
By: Zac Martin
Author: Zac Martin, Investment Associate
Week Ending October 11th – Inflationary Haunt
- Core Consumer Price Index for September reported 3.3% year over year growth which was slightly above analyst expectations. This surprise highlights the continued inflation risk the Fed faces by cutting rates too early. The Market is still expecting a rate cut in November’s meeting.
- The FOMC minutes for the September meeting revealed that several Fed members had voiced concerns around not cutting rates in July. Consequently, those members pushed for a 0.5% cut with only one member dissenting in favor of a 0.25% cut.
- NFIB Small Business Index slightly increased to 91.5 in September. However, financing rates for small business has continued to climb with the average short-term loan being 10.1%, a 23 year high.
- Earnings: JPMorgan reported higher than expected net interest income, in addition, to increasing yearly guidance. Wells Fargo saw a decrease in total revenue and guided net interest income to the lower end of prior estimates.
The week ahead:
- Empire State Index (10/15)
- Retail Sales (10/17)
- Earnings: SCHW, UNH, PNC, BAC, JNJ, WBA, GS, STT, C, JBHT, UAL (10/15), SYF, CFG, USB, ABT, MS, PLD, ULTA, CCI, CSX, DFS, STLD (10/16), BX, HBAN, TFC, ELV, KEY, NFLX (10/17), FITB, PG, AXP, SLB (10/18).
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